TMI BlogInventory Valuation report under clause (ii) of section 142(2A) of the Income-tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... y/ our examination of the books of account and other documents, it appears that proper books of account and other documents with respect to inventory have been kept by the head office, other premises and the branches of the assessee visited by * me/us, and proper data adequate for the purposes of inventory valuation have been received from branches not visited by * me/us subject to the comments given below: (a) (b) .. 5. In * my/our opinion and to the best of * my/our information and according to explanations given to * me/us, the Inventory Valuation presented herein below in * my/our report is true and correct subject to comments given below: (a) (b) .. 6. The prescribed particulars and such other particulars as were required by the Assessing Officer by order No. _______________________ dated __________________are annexed hereto. In * my/our opinion and to the best of *my/our information and according to explanations given to * me/us, these are true and correct. 7. Any variations observed in the Inventory Valuation Report compared to the disclosures made in Form No. 3CD (or if no Form No. 3CD has been furnished, then value as per audited accounts) have been adequately explained al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded for principal products/ services. 8. Give summarized details of Financial Results (as per the Audited Accounts of the Assessee) Details of Financial Results (as per the Audited Accounts of the Assessee) S. No. Particulars Year under reporting Previous Year 1 Previous Year 2 1 Turnover 2 Profit (Loss) before tax 3 Less: Taxes paid 4 Profit (Loss) after tax 5 Raw Materials Consumed 6 Opening Inventory 7 Closing Inventory 8 Average Inventory Holding Period (days) ={365/(Turnover [1]/Average Inventory)} Average Inventory = {[6]+[7]}/2 9 Average Raw Material Stock to Consumption (days) 10 Average. Stores and Spares Stock to Consumption (days) 9. In respect of items manufactured, full quantitative details of raw materials and finished products as indicated below (consolidated at entity level): (i) Details of Raw Material (RM) for the relevant period under reporting - S. No. Details Raw Material description Unit of Measurement (UOM) Opening stock Purchases during the relevant period 1. RM1 2. RM2 3. RM3 Others Consumption of Raw Material during the relevant period Raw Material sold during the relevant period Closing stock Other adjustments Notes: 1. Inventory of all such raw materials ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Finished Goods Sl. Description Item Code UOM Opening Stock Closing Stock Qty COP/ PV (Rs.) NRV (Rs.) Lower of (6) or (7) Value (5) x (8) (Rs.) Qty COP/ PV (Rs.) NRV (Rs.) Lower of (11) or (12) Value (10) x (13) (Rs.) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1 Product 1 2 Product 2 3 Product 3 ......... Total COP: Cost of Production PV: Purchase Value NRV: Net Realisable Value Notes: Add or delete rows as per the number of finished products (i)(b) Valuation of Stock-in-trade Sl. Description Item Code UOM Opening Stock Closing Stock Qty COP/ PV (Rs.) NRV (Rs.) Lower of (6) or (7) (Rs.) Value (5) x (8) (Rs.) Qty COP/ PV (Rs.) NRV (Rs.) Lower of (11) or (12) (Rs.) Value (10) x (13) (Rs.) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1 Product 1 2 Product 2 3 Product 3 ......... Total COP: Cost of Production PV: Purchase Value NRV: Net Realisable Value Notes: Add or delete rows as per the number of products (ii) Valuation of Work-in-Progress (WIP) Sl. Description Item Code UOM Opening Stock Closing Stock Qty COP (Rs.) NRV (Rs.) Lower of (6) or (7) (Rs.) Value (5) x (8) (Rs.) Qty COP (Rs.) NRV (Rs.) Lower of (11) or (12) (Rs.) Value (10) x (13) (Rs.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Cost Accountant In case of variation in the method adopted by the assessee, state reasons for variations in quantity, rates and value along with method adopted by the Cost Accountant for various items of inventory giving full justification. Opening stock Closing stock a. Finished Goods (manufactured) b. Stock-in-trade c. Work-in-progress (WIP) d. Raw materials e. By-products f. Intermediate Products g. Jigs, Tools, and Dies h. Stores, Spares and Consumables i. Scrap j. Any other item (ix) Any other relevant comment, observation or qualification of the Cost Accountant Notes: 1. The item level details shall be maintained by the Assessee and the Cost Accountant and produced if required by the Assessing Officer. 2. Income Computation and Disclosure Standard II shall be applied for valuation of inventories, except: (a) Work-in-progress arising under construction contract including directly related service contract which is dealt with by the Income Computation and Disclosure Standard on construction contracts; (b) Work-in-progress which is dealt with by other Income Computation and Disclosure Standard; (c) Shares, debentures and other financial instruments held as stock-in-trade wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cost (Rs.) Replacement rate (Rs.) Lower of (6) or (7) (Rs.) Value (5) x (8) (Rs.) (1) (2) (3) (4) (5) (6) (7) (8) (9) 1 Item 1 2 Item 2 3 Item 3 Total Closing Stock Qty Purchase cost (Rs.) Replacement rate (Rs.) Lower of (11) or (12) (Rs.) Value (10) x (13) (Rs.) (10) (11) (12) (13) (14) Note: Add number of rows depending on the number of Items (v) Summary of Inventory Valuation for Construction Contracts as on ________________ Sl. Particulars Value as per Form No. 3CD (If Form No. 3CD not furnished, then value as per audited accounts) (Rs.) Value as per Cost Accountant (Rs.) Variation if any (Rs.) Opening Closing Opening Closing Opening Closing (1) (2) (3) (4) (5) (6) (7) (8) (5)-(3) (6)-(4) 1 Completed units ready for sale 2 Construction Work-in-progress 3 Construction Materials 4 Construction Fittings, supporting equipment and Others Total Impact on Profit or Loss Impact on Income Tax Note: Specify the amount by which profit or loss would be affected by the changed valuation. (vi) Details of inventory valuation carried out by the Cost Accountant Inventory Items Method of valuation used by the Cost Accountant In case of variation in the method adopted by the assessee, state reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber of rows depending on the number of Convertible Securities (iv) Valuation of Any other security held as Stock-in-trade Sl. Description Opening Stock Closing Stock Qty AC (Rs.) NRV (Rs.) Lower of (4) or (5) (Rs.) Value (3)X (6) (Rs.) Qty AC (Rs.) NRV (Rs.) Lower of (9) or (10) (Rs.) Value (8)X (11) (Rs.) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) 1 Any other Security 1 2 Any other Security 2 3 Any other Security 3 . Total Ac : Actual Cost NRV: Net Realisable Value Note: Add number of rows depending on the number of Any other Securities (v) Summary of Inventory Valuation for Shares, Debentures and other Financial Instruments held as stockin-trade as on _____________________ Sl. Category Value as per Form No. 3CD (If Form No. 3CD not furnished, then value as per audited accounts) (Rs.) Value as per Cost Accountant (Rs.) Variation if any (Rs.) Opening Closing Opening Closing Opening Closing (1) (2) (3) (4) (5) (6) (7) (8) (5) (3) (6) (4) 1 Listed Shares 2 Unlisted Shares 3 Debt Securities 4 Convertible Securities 5 Any other Security Total Impact on Profit or Loss Impact on Income Tax Note: Specify the amount by which profit or loss would be affected by the changed valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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